Sunday, 30 November 2014

TO BUILD PUBLIC AWARENESS ON THE IMPORTANCE OF INSURANCE



A special strategy was needed to build awareness on the importance of insurance to the Indonesian people due to low penetration of insurance in Indonesia. Chairman of the Indonesia Insurance Council [DAI] Hendrisman Rahim disclosed on Monday [13/10] in his press conference in connection with the 98th Insurance Day 2014 on Saturday [18/10].

People’s awareness of insurance products must be enhanced time after time. This was because survey outcome by National Financial Survey run by OJK in 2013 showed that only 17.84% or only 18 out of 100 people were well literate about insurance and only around 12 out of 100 Indonesian citizens [11.8%] used insurance services.

Hendrisman stated that low penetration of insurance in Indonesia indicated that there were still many Indonesians who had not understood insurance for life and how to manage their money well. “This is regretful considering Indonesia’s huge population,” he said.

Indonesia’s 240 million population was a potential market to the insurance industry especially with the sizable growth of middle class population at 8% per year. Today Indonesia’s middle class population was posted at 50 million people and would reach its peak in the next 25 years. The high market potential was visible in the numerous foreign investors of foreign insurance companies entering Indonesia lately.

Meanwhile contribution of the insurance sector to GDP was posted to increase. This was indicated in increased GDP ratio from 1.82% in 2008 to become 2.16% in 2012. With proclamation of Insurance Day, people’s awareness could be increased each year. (SS)

Business News - October 17, 2014

No comments: